JSE-listed Raubex on Monday posted a solid performance for the year ended February 29, with encouraging prospects on the horizon.

The group’s headline earnings a share increased 12.1% to 234.4c and its earnings a share increased 11% to 236.9c.

Profit before tax increased 9.1% to R661.6-million, while profit edged up from R428-million in the 12 months to February 2015 to R469-million during the year under review.

Raubex also recorded an increase in operating profit margin to 9%, with operating profit up 14.2% to R710.6-million.

“The group has delivered another solid set of results in a competitive construction sector and a year during which the road construction industry was again impacted by a shortage in the supply of bitumen,” said Raubex CEO Rudolf Fourie.

Raubex generated revenue of R7.93-billion in the 2016 financial year, an increase of 9.4% on the prior year.

“These results were supported by an improvement in the performance of the road construction division and favourable operating conditions in the materials division,” he said, adding that the infrastructure division results were also stable, supported by solar energy projects gaining momentum in the second half of the year.

Raubex had a secured order book of R8.27-billion, a drop from the R8.68-billion order book reported in 2015, with 25.8% of the order book for contracts in Africa, excluding South Africa.

“A disciplined approach to securing a quality order book has resulted in a marked improvement in the performance of the road construction division.

The materials division continued to see healthy demand for its products and services in both its commercial quarrying operations and its mining and material handling operations with this division contributing over half of the group's operating profit,” Fourie commented.

These “favourable” conditions were expected to continue into the new financial year, while Raubex continued to seek out acquisitions in the materials sector to expand its geographical footprint.

“Supported by encouraging prospects, a strong balance sheet and healthy cash position, the group is looking forward to another good year ahead as it enters its tenth year of operations since listing on the JSE,” he said.

Raubex reported total cash and cash equivalents of R969.7-million in 2016, a 3.5% increase on the R937.3-million achieved in 2015.

A final dividend of 42c a share was declared for the 2016 financial year.